48.In preparing the April bank reconciliation for Oscar Company, it was discovered that on April 10 a check was written to pay delivery expense of $45 but the check was erroneously recorded as $54 in the company’s books. The journal entry required to correct the error is    A.  B.  C.  D.  49.Which of the following is not a procedure to maintain internal controls over […]

  129.On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Griffith Publishing Company for the second year of the subscription assuming the company uses a calendar reporting period?     A.$0. B.$516. C.$387. D.$129. E.$430. 130.On April 1, Griffith Publishing Company […]

    131. According to the just-in-time philosophy, A. finished goods should always be available in case a customer wants something.B. employees should be expert at one function rather than be cross-trained for multiple functions.C. movement of the product and material is reduced.D. the product moves from process to process until completion.   132. Just-in-time operations attempt to significantly reduce A. inspection time and processing time.B. moving time and processing time.C. inspection time and moving time.D. only […]

  165.A department store has budgeted cost of goods sold for March of $60,000 for its women’s shorts. Management wants to have $12,000 of shorts in inventory at the end of the month to prepare for the summer season. Beginning inventory in March was $8,000. What dollar amount of shorts should be purchased to meet the above plans?     166.A sporting goods store budgeted August […]

Multiple Choice Questions   1.Performance Bicycle Company makes steel and titanium handle bars for bicycles. It requires approximately 1 hour of labor to make one handle bar of either type. During the most recent accounting period, Barr Company made 7,000 steel bars and 3,000 titanium bars. Setup costs amounted to $84,000. One batch of each type of bar was run each month. If a single […]

  75. The adjusted, preclosing trial balances of Parent Company and Sub Company on December 31, Year 2, appear below.    Parent Company Sub Company   $  4,000   $  1,000   Accounts Receivable         Merchandise Inventory 10,000   10,000   Investment in Sub Company 9,000   —   Land l,000   2,000   Buildings and Equipment, net     5,000   Accounts Payable   […]

    98. The amount of cash paid by Korman Corporation in 2009 for the purchase of marketable securities was:  A. $240,000. B. $160,000. C. $200,000. D. $190,000.     99. The cash proceeds received by Korman Corporation in 2009 for the sale of marketable securities was:  A. $160,000. B. $230,000. C. $240,000. D. $280,000.     100. How should the transactions involving marketable securities be classified in Korman’s statement of cash flows for 2009?  A. The […]

    81. _____ refers to scanning documents, storing them electronically, and retrieving them.  A. Software design B. Imaging C. Groupware D. Computer Aided Drawing Imaging is particularly useful because paper files take a large volume of space and are difficult to access. Imaging has been used in applicant tracking and in benefits management.     82. Expert systems that help organizations meet quality and customer satisfaction goals simultaneously are  A. enabling […]

  38) On December 31, 2010, a company purchased a $100,000 building by signing a $100,000, 20-year mortgage note. The annual interest rate is 6%, with payments of $8,718 made on December 31 each year. Required: 1. Complete the last line of the table below. ROUND YOUR ANSWERS TO THE NEAREST DOLLAR.     Mortgage balance   Annual payment Interest portion of payment Amount of […]

1. The cost of goods sold is equal to: A. purchases less beginning inventory plus ending inventory.B. the inventory account as reported on the balance sheet.C. the cost of goods available for sale less ending inventory.D. the amount of inventory on hand at the end of the accounting period.   2. The amount of inventory expensed during the year is reported on the income statement as: A. sales revenue.B. cost of goods sold.C. operating expenses.D. administrative expenses. […]